DALLAS--Orlando, Fla.-based CNL Commercial Real Estate Inc. has acquired the former Fossil Watch headquarters building in Richardson through a joint venture investment with CenterSquare Investment Management.

“We are renovating the building to target creative office users who need large floor plates and high parking requirements at a very competitive rate,” Jimmy Grisham, managing director of CNL, told GlobeSt.com. “The existing building is 190,000 square feet and is currently designed for a single user. We will be reconfiguring the building to accommodate multiple tenants as small as 40,000 square feet by creating new entries and common areas and adding and enlarging nearly 40 windows. We are converting the former warehouse into 400 covered parking spaces that will also allow us to offer more than 1,400 parking spaces over the entire property.”

The asset is located in the Richardson submarket, near Interstate 75 and Campbell Road, an area, CNL points out, that is heating up with the relocation of State Farm's two-million-square-foot campus, a 115,000-square-foot relocation for Kohl's and Raytheon's corporate relocation.

“We love the Dallas market and are excited to make this creative acquisition,” says Pryse Elam, CNL Commercial Real Estate's president of development and investments. “We have acquired nearly $100 million of assets in the past six months in the southeast and Texas and look forward to continuing to find unique, creative, off-market opportunities.”

The former Fossil headquarters building is the first acquisition for CNL Commercial Real Estate in the Dallas/Fort Worth area through its recently created CCRE Sponsor Equity Fund I, which targets investments in office, industrial and retail acquisitions across the southeast and Texas. CNL Commercial Real Estate is targeting an additional $150 million in acquisitions for its Sponsor Equity Fund I this year.

CNL Commercial Real Estate will manage the building and has selected Peloton Commercial Real Estate to lease the project.

“This is really fun, creative adaptive re-use of a former headquarters facility,” Grisham says.

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